The Real Deal Miami

Citizens Property faces big loss

October 24, 2008 10:07AM

The state-run insurer may face investment losses of more than $223 million, the chief financial officer of Citizens Property Insurance reported. CFO Sharon Binnum said most of its losses come from asset-backed securities that have declined sharply in value as the mortgage and credit markets have fallen apart in the past year. She said there is about $500 million in those distressed securities in its portfolio right now. The insurer has a total of $8 billion available to pay claims, including money it has borrowed and invested until needed.